Foreign education loan applications spike, tier-II and tier-III cities lead the way
The number of education loans applications to fund study abroad has nearly doubled in the last year, as more and more Indian students look to pursue education in foreign universities.
According to a study by Prodigy Finance, a UK-based FinTech company, there has been a 98% growth in study abroad loan applications in the first 3 months of 2022 vs the first 3 months of 2021.
Tier-II and tier-III cities including Vijayawada , Guntur, Warangal and Tirupati among others have contributed 176% of this growth. 67% of applicants were male while 33% of applications were female growing at a rate of 58% and 54% respectively.
The average loan amount for the study abroad applications was $42,000.
COVID-19 turned the education ecosystem on its head overnight causing a displacement around the world, and the overseas education sector was no different.
According to data from the Ministry of External Affairs (MEA), the pandemic had resulted in a 55% dip in 2020 in the number of students who have gone abroad compared to 2019. Now, with a sense of normalcy returning with relaxations in visa processes and mass vaccination, the overseas education market is set to revive itself and the data from Prodigy Finance corroborates this.
Students heading abroad were more inclined towards Business, Engineering, Healthcare, Law, Public Policy and Science, the study noted.
The United States remained the top choice for Indians wanting to pursue engineering degrees. The top 5 popular engineering schools in 2021 were Northeastern University, Carnegie Mellon University, University of Texas at Arlington, Arizona State University, University at Buffalo.
For business courses however, a more global mix of university choices wer seen. The most popular business schools being INSEAD, London Business School, IESE Business School, Wharton School, Booth School of Business.
“The Indian foreign education landscape has undergone a massive change in the post-COVID-19 era. With the opening up of international travel, easing of various restrictions and vaccinations being ramped up, the global education sector has started to pick up. The number of applications of Indian students for admission to foreign universities has gradually been on a rise,” Mayank Sharma, Country Head, Prodigy Finance said.